FORM 6-K/A

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K/A

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

FOR THE MONTH OF APRIL 2015

Commission File Number: 333-04906

 

 

SK Telecom Co., Ltd.

(Translation of registrant’s name into English)

 

 

Euljiro65(Euljiro2-ga), Jung-gu

Seoul 100-999, Korea

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  x            Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨

 

 

 


REPORT OF MATERIAL EVENT (AS AMENDED)

Preliminary Note: This document reflects information added to or revised in “II. MATTERS TO BE REPORTED — CLAUSE 5. MATTERS RELATING TO APPRAISAL RIGHTS” of the Form 6-K furnished by SK Telecom on March 24, 2015 with respect to the following:

(a) The submission period for written notices of dissent against the Share Exchange (as defined below) proceeding in accordance with the procedures for a small-scale share swap by SK Telecom’s shareholders is April 6, 2015 to April 20, 2015.

(b) Notwithstanding the above, the submission period for such notices applicable to SK Telecom’s ADR (as defined below) holders is April 6, 2015 to April 16, 2015. SK Telecom’s ADR holders should contact Citibank Shareholder Services at 1-877-CITI-ADR (248-4237) to submit a written notice of dissent or for any other inquiries.

 

I. REASON FOR REPORT

Resolution on the comprehensive exchange of shares of SK Broadband Co., Ltd. (“SK Broadband”) for the shares of SK Telecom Co., Ltd. (“SK Telecom”).

 

II. MATTERS TO BE REPORTED

[Share Exchange Ratio]

 

Item

   Parent
(SK Telecom)
    Wholly-owned (“complete”) subsidiary
after the Share Exchange
(SK Broadband)
 

Reference share price (Won)

     285,434        4,822   

- Percentage of discount or premium

     0     0

Average asset/profit value

     —          —     

- Asset value

     —          —     

- Profit value

     —          —     

Exchange consideration / share (Won)

     285,434        4,822   

Share exchange ratio

     1        0.0168936   

- Relative value

     —          —     

Note: The share exchange ratio for the exchange of SK Broadband’s common shares into SK Telecom’s common shares (the “Share Exchange”) has been determined to be 1:0.0168936. The shareholders of SK Broadband’s common stock set forth in SK Broadband’s shareholder register on the date of the Share Exchange (the “Share Exchange Date”, which is currently scheduled for June 9, 2015) (other than SK Telecom) will be allotted 0.0168936 common shares of SK Telecom (par value Won 500) in exchange for one common share of SK Broadband (par value Won 5,000).

CLAUSE 1. BASIC MATTERS RELATING TO THE SHARE EXCHANGE

 

1. Purpose of the Share Exchange

 

A. Parties and Background

 

(1) Parties

 

Parent company    Company Name    SK Telecom Co., Ltd.
   Location   

65, Eulji-ro, Jung-gu

Seoul 100-999, Korea

   Representative Director    Dong-Hyun Jang
   Entity Type    Listed Corporation on the KRX KOSPI Market of the Korea Exchange
Wholly-owned subsidiary after the Share Exchange   

Company Name

Location

  

SK Broadband Co., Ltd.

24, Toegye-ro, Jung-gu

Seoul 100-711, Korea

   Representative Director    In-Chan Lee
   Entity Type    Listed Corporation on the KRX KOSDAQ Market of the Korea Exchange

 

2


On March 28, 2008, SK Telecom became SK Broadband’s largest shareholder with a 43.59% equity stake (102,451,249 shares). Subsequently, SK Telecom acquired additional shares of SK Broadband through participation in rights offerings, among other methods, to increase its equity interest to 50.56% (149,638,354 shares) as of March 20, 2015. After SK Telecom’s initial acquisition of SK Broadband’s shares, both companies offered various integrated mobile and fixed-line products such as cellular phone service, broadband Internet and fixed-line telephone service to create synergies and gain a competitive advantage in the market.

SK Telecom intends to acquire all of the shares of SK Broadband that it does not otherwise own through the Share Exchange following which SK Broadband will become its wholly-owned subsidiary in order to strengthen its competitiveness and enhance corporate and shareholder value by improving management efficiency and maximizing synergies.

 

(2) Applicability of Back Door Listing

Not applicable

 

B. Matters Relating to the Allotment of Shares to SK Broadband’s Shareholders

 

(1) Allotment of Shares

Shareholders listed in the shareholder register of SK Broadband (other than SK Telecom) as of the Share Exchange Date (currently scheduled for June 9, 2015) will be allotted 0.0168936 common shares of SK Telecom (par value Won 500) in exchange for one common share of SK Broadband (par value Won 5,000), and accordingly the shares of SK Broadband owned by shareholders of SK Broadband (other than SK Telecom) will be transferred to SK Telecom on the Share Exchange Date. The aggregate number of registered common shares that SK Telecom will allot to SK Broadband shareholders as a result of the Share Exchange will be 2,471,883 shares. In accordance with Article 360-6 of the Korean Commercial Code (“KCC”), treasury shares acquired by SK Telecom before the resolution on the Share Exchange will be distributed in lieu of an issuance of new shares. If SK Telecom acquires additional shares of SK Broadband during the period between the date of the share exchange agreement entered into in connection with the Share Exchange (the “Share Exchange Agreement”) and the Share Exchange Date, the number of treasury shares to be distributed will be decreased by the number of shares equal to the number of such additionally acquired shares multiplied by the share exchange ratio (1:0.0168936).

 

(2) Treatment of Fractional Shares

If there are fractional shares of SK Telecom to be allotted to shareholders of SK Broadband in connection with the Share Exchange, cash in lieu of such fractional shares will be paid to SK Broadband’s shareholders entitled to such fractional shares within one month from the Share Exchange Date and the amount as calculated based on the closing price of SK Telecom’s common shares as of the Share Exchange Date.

 

C. Main Impact and Effect on SK Telecom’s Management, Finance and Business

 

(1) Impact and Effect on SK Telecom’s Management

Upon the completion of the Share Exchange, (i) there will be no change in the share ownership interest of SK Telecom’s existing shareholders or the corporate governance structure and management of SK Telecom, (ii) SK Telecom will be the parent company of SK Broadband with 100% ownership and will remain a listed corporation on the KRX KOSPI Market of the Korea Exchange and (iii) SK Broadband will become a wholly-owned subsidiary of SK Telecom and will be delisted from the KRX KOSDAQ Market of the Korea Exchange.

 

3


In addition, pursuant to the Share Exchange Agreement, the directors and members of the Audit Committee of SK Telecom appointed before the Share Exchange shall retain their original terms of appointment despite Article 360-13 of the KCC, and there will be no executive officers newly appointed due to the Share Exchange.

 

(2) Impact and Effect on SK Telecom’s Financial Position and Business

Upon the completion of the Share Exchange, SK Broadband will become a wholly-owned subsidiary of SK Telecom. For a more detailed explanation of the impact and effect of the Share Exchange on SK Telecom’s financial position and business, please refer to our future filings with the U.S. Securities and Exchange Commission to be filed on Form CB.

 

D. Future Plans for Reorganization of Corporate Structure

Currently, there are no plans for a corporate reorganization, including any merger with another entity.

 

2. Form of the Share Exchange

 

A. Comprehensive Exchange of Shares

SK Telecom intends to acquire all of the shares of SK Broadband that it does not otherwise own through the Share Exchange following which SK Broadband will become its wholly-owned subsidiary

 

B. Applicability of Small-Scale Share Swap or Simplified Share Swap

The Share Exchange with respect to SK Telecom falls under the definition of “small-scale share swap” as set forth in Article 360-10 of the KCC. The Share Exchange with respect to SK Broadband does not fall under the definition of “simplified share swap” as set forth in Article 360-9 of the KCC.

KOREAN COMMERCIAL CODE

Article 360-9 (Simplified Share Swaps) (1) In cases where all the shareholders of a company becoming a complete subsidiary give their consent or where a company becoming a complete parent company owns 90 percent or more of the total number of issued and outstanding shares of the company becoming the complete subsidiary, the approval of the board of directors may substitute for the approval of a general meeting of shareholders of the company becoming the complete subsidiary.

Article 360-10 (Small-Scale Share Swaps)

(1) In cases where the total number of new shares issued for a share swap by a company becoming a complete parent company does not exceed 5 percent of the total number of issued and outstanding shares of that company, the approval of the board of directors may substitute for the approval of a general meeting of shareholders mentioned in Article 360-3 (1); provided, that this shall not apply where the amount to be paid to the shareholders of a company becoming a complete subsidiary, if so determined, exceeds 2 percent of the value of net assets of the company becoming a complete parent company on its final balance sheet as provided for in Article 360-4 (1) 3.

 

C. Listing Plans of SK Telecom after the Share Exchange

Upon the completion of the Share Exchange, SK Telecom will be the parent company of SK Broadband with 100% ownership and will remain a listed corporation on the KRX KOSPI Market of the Korea Exchange and SK Broadband, which will be a wholly-owned subsidiary of SK Telecom, will be delisted from the KRX KOSDAQ Market of the Korea Exchange.

 

4


D. Information Regarding SK Telecom and SK Broadband

 

Classification

  

Parent company

  

Wholly-owned subsidiary after the Share Exchange

Company Name    SK Telecom Co., Ltd.    SK Broadband Co., Ltd.
Location   

65, Eulji-ro, Jung-gu

Seoul 100-999, Korea

  

24, Toegye-ro, Jung-gu

Seoul 100-711, Korea

Listing Status    Listed on KRX KOSPI Market of the Korea Exchange    Listed on KRX KOSDAQ Market of the Korea Exchange
Certain Subsidiaries    SK Broadband Co., Ltd. (Korea, 50.6%), SK Telink Co., Ltd. (Korea, 83.5%), PS&Marketing Co., Ltd. (Korea, 100%), Service Ace Co., Ltd. (Korea, 100%), Service Top Co., Ltd. (Korea, 100%), Network O&S Co., Ltd. (Korea, 100%), SK Planet Co., Ltd. (Korea, 100%), NEOS Networks Co., Ltd. (Korea, 66.7%), iriver Ltd. (Korea, 39.3%), SK Telecom China Holdings Co., Ltd. (Korea, 100.0%), SK Global Healthcare Business Group, Ltd. (Hong Kong, 100.0%), SKT Vietnam PTE., Ltd. (Singapore, 73.3%), SKT Americas, Inc. (USA, 100.0%), YTK Investment Ltd. (Cayman, 100.0%), Atlas Investment (Cayman, 100.0%)    -

 

  1) After the Share Exchange, SK Broadband will become a wholly-owned subsidiary of SK Telecom.

 

  2) The list of subsidiaries and ownership percentage are based on the consolidated financial statements as of December 31, 2014.

 

E. Noteworthy Matters Relating to the Method of the Share Exchange

Not applicable.

 

3. Progress and Schedule

 

A. Progress

 

    March 20, 2015: Resolution of the boards of directors regarding entry into the Share Exchange Agreement

 

B. Schedule

The Share Exchange will proceed pursuant to Article 165-4 of the Financial Investment Services and Capital Markets Act of Korea (“FSCMA”), Article 176-6 of the Enforcement Decree of FSCMA and Articles 360-2 and 360-14 of the KCC.

 

5


CLAUSE 2. SUMMARY OF THE SHARE EXCHANGE COUNTERPARTY

 

1. Overview of the Entity

 

A. Summary of the Entity

 

Legal and business name of the entity    SK Broadband Co., Ltd.
Date of establishment    September 26, 1997
Principal Business    Fixed-line telecommunication services, multimedia and IPTV services

 

B. Executive Officers and Employees

 

(1) Executive Officers

 

(As of December 31, 2014)    (Unit: in shares)
   

Gender

 

Month
and Year
of Birth

 

Title

 

Registered
Director

 

Standing

 

Division

 

Education & Work
Experience

 

Number of Shares
Owned

 

Term of Office

 

Expiration
of Term

Name

               

Common
Shares

 

Preferred
Shares

   
In-Chan Lee   Male   10.1962   President   No   Yes   President   (Concurrent) Head, Marketing Division, SK Broadband   —     —     2.7.2013 ~   —  
Seung-Yun Ahn   Male   10.1962   Representative Director   Yes   Yes   Representative Director  

Head, Business Support Division,

SK Telecom

  —     —     3.22.2013 ~   —  
Tae-Chul Chung   Male   5.1961   Standing Director   Yes   Yes   Head of Business Administration  

Head,

Company Relation Division,

SK Telecom

  —     —     12.18.2013 ~   —  
WonYoung Yun   Male   8.1964   Non-executive Director   Yes   No   Non-executive Director  

(Concurrent) Head,

Marketing Division,

SK Telecom

  —     —     3.21.2014 ~   —  
Young-Tae Song   Male   12.1948   Outside Director   Yes   No   Outside Director (Member of Audit Committee)  

Representative Director,

Ehwa Diamond Industrial Co., Ltd.

  —     —     3.23.2012 ~   —  

 

6


   

Gender

 

Month
and Year
of Birth

 

Title

 

Registered
Director

 

Standing

 

Division

 

Education & Work
Experience

 

Number of Shares
Owned

 

Term of Office

 

Expiration
of Term

Name

               

Common
Shares

 

Preferred
Shares

   
Son-ku Kim   Male   9.1958   Outside Director   Yes   No   Outside Director (Member of Audit Committee)  

(Current) Seoul National University,

Economics Dept.,

Professor

  —     —     3.21.2014 ~   —  
Yoon Oh   Male   11.1962   Outside Director   Yes   No   Outside Director (Member of Audit Committee)  

(Current) Hanyang University,

Law Dept.,

Professor

  —     —     3.21.2014 ~   —  
Myeong-Hyeon Cho   Male   6.1964   Outside Director   Yes   No   Outside Director  

(Current) Korea University,

Business Administration Dept.,

Professor

  17,900   —     3.28.2008 ~   —  
Jong-Ryeol Kang   Male   10.1964   Head of Department   No   Yes   Head of Network Department  

Head,

Network Strategy Division,

SK Telecom

  2,057   —     12.18.2013 ~   —  
Jong-Won Kim   Male   9.1968   Head of Division   No   Yes   Head of Media Business Division  

(Concurrent)

Head,

Media Business Division,

SK Telecom

  —     —     12.16.2014 ~   —  
Chang-Suk Shin   Male   6.1958   Head of Department   No   Yes   Head of Corporate Business Department  

Head,

Solution Business 1,

SK Telecom

  —     —     2.7.2013 ~   —  
Seung-Cheon Yang   Male   4.1966   Head of Division   No   Yes   Head of Marketing Division  

Head,

Business Division,

SK Broadband

  1, 054   —     1.1.2007 ~   —  
Sang-Heon Lee   Male   5.1957   Head of Division   No   Yes   Head of Company Relations Division  

Head,

Public Relations,

SK Broadband

  —     —     1.1.2007 ~   —  
John Choi   Male   1.1965   Head of Division   No   Yes   Head of Business Planning Division  

Head,

Strategic Planning Group,

SK Broadband

  3,000   —     3.31.2008 ~   —  

 

7


1) According to SK Broadband’s articles of incorporation, the terms of the directors expire on the third general meeting of shareholders convened after their appointment

 

2) According to SK Broadband’s articles of incorporation, the general meeting of shareholders shall be convened within three months from the close of each business year.

 

3) At the 18th general meeting of shareholders held on March 20, 2015, representative director Seung-Yun Ahn resigned, outside director Young-Tae Song’s term expired and director In-Chan Lee and outside director (and audit committee member) Chan-Soon Nam were newly appointed. Director In-Chan Lee was nominated as the representative director at the 184th board of directors held on the same date.

 

(2) Employees

 

(As of December 31, 2014)      (Unit: in persons and millions of Won)  

Business

   Gender   

 

 

Number of Employees

     Average
Years of
Continuous
Service
     Total
Amount
of
Annual
Salary
     Average
Annual
Salary per
Person
     Remarks  
      Full-time      Contract      Other      Total              

Fixed-line telecommunication services

   Male      1,392         45         —           1,437         11.1         122,967         73         —     

Fixed-line telecommunication services

   Female      118         31         —           149         5.8         7,595         43         —     
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

  1,510      76      —        1,586      10.5      130,562      70      —     
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

1) Based on Section 9-1-2 (Employee Status) of the Corporate Disclosure Guidelines (amended as of August 20, 2012)

 

2) Average annual salary per person was calculated based on the number of actual recipients.

 

C. Major Shareholders

 

1) Largest Shareholder and Specially Related Parties of SK Broadband

 

(As of December 31, 2014)           (Unit: in shares and percentages)  

Name

   Relationship    Type of share    Number of shares owned and ownership ratio      Remarks  
         Beginning of Period      End of Period     
         Number of
shares
     Ownership
ratio
     Number of shares      Ownership
ratio
    

SK Telecom Co., Ltd.

   Largest
shareholder
   Common
shares
     149,638,354         50.56         149,638,354         50.56         —     

Shin Won Chey

   Specially related
party
   Common
shares
     647,168         0.22         347,829         0.12         —     

Myung Hyun Cho

   Specially related
party
   Common
shares
     17,900         0.01         17,900         0.01         —     
        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

Common
shares
  150,303,422      50.79      150,004,083      50.68      —     
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Preferred
shares
  0      0      0      0      —     
        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

8


2. Summary Financial Data for the Past Three Years and External Audits

 

A. Summary Financial Data of SK Broadband for the Past Three Years

 

(i) Summary Consolidated Statements of Financial Position

 

          (Unit: Won)  

Classification

   As of December 31, 2014      As of December 31, 2013      As of December 31, 2012  

Assets

        

Current Assets

     464,811,250,853         542,147,096,384         684,803,537,440   

Cash and cash equivalents

     20,462,661,063         68,234,681,826         86,725,906,754   

Short-term financial instruments

     2,571,000,000         3,284,000,000         153,194,000,000   

Trade and other receivables, net

     403,149,126,996         422,195,795,032         388,270,470,904   

Inventories, net

     11,182,679,945         24,772,823,725         40,798,283,090   

Income tax refund receivable

     324,391,450         873,509,626         2,755,324,473   

Other current assets

     27,121,391,399         22,786,286,175         13,059,552,219   

Non-current Assets

     2,646,227,141,702         2,502,202,244,123         2,394,351,835,803   

Long-term financial instruments

     8,500,000         8,500,000         11,000,000   

Long-term investment securities

     6,013,780,928         12,661,402,953         26,475,241,367   

Long-term trade and other receivables

     75,636,185,226         72,897,962,276         72,133,485,949   

Investments in associates

     24,420,014,360         20,077,336,013         22,796,564,870   

Property and equipment, net

     2,317,256,916,463         2,191,449,496,003         2,056,529,546,913   

Investment property

     24,608,448,976         25,603,513,266         35,774,935,775   

Intangible assets

     178,440,497,410         171,690,540,992         171,590,913,145   

Other non-current assets

     17,536,193,878         7,813,492,620         9,040,147,784   

Long-term derivative financial assets

     2,306,604,461         
  

 

 

    

 

 

    

 

 

 

Total Assets

  3,111,038,392,555      3,044,349,340,507      3,079,155,373,243   
  

 

 

    

 

 

    

 

 

 

 

9


Classification

   As of December 31, 2014     As of December 31, 2013     As of December 31, 2012  

Liabilities

      

Current Liabilities

     882,933,501,965        943,976,063,640        907,000,183,778   

Accounts payable - other

     434,856,735,740        513,495,961,761        441,178,670,656   

Current portion of debentures and long-term borrowings, net

     429,879,517,617        399,578,246,824        430,134,902,049   

Other current financial liabilities

     3,206,096,843        18,829,664,060        19,904,440,786   

Other current liabilities

     14,991,151,765        12,072,190,995        15,782,170,287   

Non-current Liabilities

     1,106,493,335,240        972,745,049,873        1,061,607,626,010   

Long-term payables - other

     20,242,233,669        17,719,309,744        18,387,015,365   

Long-term debentures and borrowings, excluding current portion

     1,023,679,031,211        900,505,179,247        978,076,448,910   

Other non-current financial liabilities

       3,206,096,843        22,035,760,902   

Long-term derivative financial liabilities

       2,958,431,831     

Defined benefit liabilities

     49,978,878,031        34,084,165,636        29,324,703,954   

Long-term provisions

     3,532,428,123        3,597,642,693        3,252,948,322   

Other non-current liabilities

     9,060,764,206        10,674,223,879        10,530,748,557   
  

 

 

   

 

 

   

 

 

 

Total Liabilities

  1,989,426,837,205      1,916,721,113,513      1,968,607,809,788   
  

 

 

   

 

 

   

 

 

 

Equity

Share capital

  1,479,795,435,000      1,479,795,435,000      1,479,795,435,000   

Capital surplus and other capital adjustments

  314,189,109,116      314,189,109,116      315,549,046,116   

Accumulated deficit

  (663,477,913,049   (665,227,885,291   (683,866,221,309

Reserves

  (8,895,075,717   (1,128,431,831   (930,696,352

Total Equity

  1,121,611,555,350      1,127,628,226,994      1,110,547,563,455   
  

 

 

   

 

 

   

 

 

 

Total Liabilities and Equity

  3,111,038,392,555      3,044,349,340,507      3,079,155,373,243   
  

 

 

   

 

 

   

 

 

 

 

(ii) Summary Consolidated Statements of Income

 

                   (Unit: Won)  

Classification

   2014      2013      2012  

Operating revenue

     2,654,381,277,666         2,539,365,951,145         2,492,159,803,639   

Operating expense

     2,596,227,109,545         2,466,203,293,772         2,410,601,127,695   

Labor cost

     154,595,536,602         151,370,003,134         144,377,289,850   

Depreciation and amortization

     489,482,919,581         467,260,870,140         474,230,616,501   

Telecommunication equipment lease expenses

     205,427,391,102         190,568,476,321         173,734,964,431   

Sales commissions paid

     241,499,375,453         246,575,555,543         218,405,986,416   

Interconnection charges

     220,266,526,638         242,691,543,366         246,083,655,492   

Commissions paid

     780,220,363,998         686,826,417,532         710,122,530,659   

Cost of products that have been resold

     118,155,484,448         108,027,398,687         107,244,517,558   

Advertising

     119,415,116,746         112,686,181,302         95,402,635,506   

Maintenance

     118,355,211,246         113,719,498,942         103,420,792,907   

 

10


Classification

   2014      2013     2012  

Utilities

     62,800,379,668         58,438,675,249        51,098,315,179   

Bad debt

     14,379,879,843         17,791,925,701        18,269,104,281   

Loss on valuation of inventory

          5,177,322,089   

Other operating expenses

     71,628,924,220         70,246,747,855        63,033,396,826   

Operating income

     58,154,168,121         73,162,657,373        81,558,675,944   

Finance income

     20,939,477,427         10,998,402,100        30,350,923,750   

Finance costs

     75,748,712,688         71,909,760,501        86,856,225,365   

Other non-operating income

     12,504,003,137         14,965,625,422        16,057,026,386   

Other non-operating expenses

     11,778,193,554         14,219,723,449        19,670,305,953   

Gains (Losses) relating to investments in associates

     236,751,150         (691,253,390     1,171,406,988   

Profit before income tax

     4,307,493,593         12,305,947,555        22,611,501,750   

Income tax expense

          112,031,043   

Profit for the year

     4,307,493,593         12,305,947,555        22,499,470,707   

Earnings per share:

       

Basic earnings per share

     15         42        76   

 

(iii) Summary Consolidated Statements of Comprehensive Income

 

                 (Unit: Won)  

Classification

   2014     2013     2012  

Profit for the year

     4,307,493,593        12,305,947,555        22,499,470,707   

Other comprehensive income (loss)

     (10,324,165,237     6,134,652,984        (5,102,686,695

Items that will not be reclassified to profit or loss:

      

Remeasurement of defined benefit liabilities

     (2,557,521,351     6,332,388,463        (915,004,649

Items that are or may be reclassified subsequently to profit or loss:

      

Net change in fair value of available-for-sale financial assets

         (494,090,222

Net change in unrealized fair value of available-for-sale financial assets

       930,696,352        (36,205,050

Net change in unrealized fair value of derivatives

     (7,766,643,886     (1,128,431,831  

Reclassification adjustments relating to derivatives settled in the year

         (3,657,386,774
  

 

 

   

 

 

   

 

 

 

Total comprehensive income (loss)

  (6,016,671,644   18,440,600,539      17,396,784,012   
  

 

 

   

 

 

   

 

 

 

 

11


B. External Audits of the Financial Statements of SK Broadband

 

Term

  

Auditor

  

Audit Opinion

2014

   KPMG Samjong Accounting Corp.    Unqualified

2013

   Deloitte Anjin LLC    Unqualified

2012

   Deloitte Anjin LLC    Unqualified

CLAUSE 3. MATTERS RELATING TO THE EXTERNAL APPRAISAL

Pursuant to Article 176-6(3) of the Enforcement Decree of FSCMA, an external appraisal with respect to the calculation of the reference share prices are not required as the Share Exchange is an exchange of shares between listed corporations and the share exchange ratio was calculated based on the reference share prices calculated in accordance with Article 165-4 of the FSCMA and Articles 176-6 and 176-5 of the Enforcement Decree of FSCMA.

CLAUSE 4. CALCULATION OF THE SHARE EXCHANGE RATIO

 

1. Share Exchange Ratio

 

Item

   Parent
(SK Telecom)
    Wholly-owned subsidiary after the
Share Exchange
(SK Broadband)
 

Reference share price (Won)

     285,434        4,822   

- Percentage of discount or premium

     0     0

Average asset/profit value

     —          —     

- Asset value

     —          —     

- Profit value

     —          —     

Exchange consideration / share (Won)

     285,434        4,822   

Share exchange ratio

     1        0.0168936   

- Relative value

     —          —     

Note: The share exchange ratio for the Share Exchange has been determined to be 1:0.0168936. The shareholders of SK Broadband’s common stock set forth in SK Broadband’s shareholder register on the Share Exchange Date (currently scheduled for June 9, 2015) (other than SK Telecom) will be allotted 0.0168936 common shares of SK Telecom (par value Won 500) in exchange for one common share of SK Broadband (par value Won 5,000).

 

2. Calculation of the Share Exchange Ratio

As both SK Telecom and SK Broadband are listed corporations, the share exchange ratio is calculated based on the reference share prices calculated in accordance with Articles 176-5(1) and 176-6(2) of the Enforcement Decree of the FSCMA.

 

12


A. SK Telecom

 

Item

   Amount (Won)      Calculation Period

(i) Weighted average of the share prices for the most recent one-month period

     281,857       February 23, 2015 – March 19, 2015

(ii) Weighted average of the share prices for the most recent one-week period

     283,944       March 13, 2015 – March 19, 2015

(iii) Closing share price on the calculation date

     290,500       March 19, 2015

Reference share price [((i) + (ii) + (iii)) / 3]

     285,434      

Note: The reference share price is the arithmetic mean of (i) the weighted average of the share prices for the most recent one-month period, (ii) the weighted average of the share prices for the most recent one-week period and (iii) the closing share price on the calculation date, which is the date prior to the board resolution regarding the Share Exchange [((i)+(ii)+(iii))/3].

ø The table below shows the share prices and trading volumes for the one-month period leading up to the calculation date of March 19, 2015.

 

Date

   Closing Price (Won)      Trading Volume (Shares)      Closing Price × Trading Volume
(Won)
 

February 23, 2015

     291,000         72,997         21,242,127,000   

February 24, 2015

     291,000         119,745         34,845,795,000   

February 25, 2015

     288,000         121,071         34,868,448,000   

February 26, 2015

     287,500         125,510         36,084,125,000   

February 27, 2015

     286,500         171,702         49,192,623,000   

March 2, 2015

     284,000         96,975         27,540,900,000   

March 3, 2015

     283,500         109,686         31,095,981,000   

March 4, 2015

     288,000         135,798         39,109,824,000   

March 5, 2015

     290,000         135,499         39,294,710,000   

March 6, 2015

     283,000         207,854         58,822,682,000   

March 9, 2015

     279,000         190,007         53,011,953,000   

March 10, 2015

     270,500         197,630         53,458,915,000   

March 11, 2015

     269,000         183,298         49,307,162,000   

March 12, 2015

     270,000         257,139         69,427,530,000   

March 13, 2015

     283,000         216,449         61,255,067,000   

March 16, 2015

     280,000         123,012         34,443,360,000   

March 17, 2015

     279,500         106,096         29,653,832,000   

March 18, 2015

     281,500         111,038         31,257,197,000   

March 19, 2015

     290,500         218,533         63,483,836,500   

Item

     Price (Won)  

Weighted average of the closing prices for the most recent one-month period

   

     281,857   

Weighted average of the closing prices for the most recent one-week period

   

     283,944   

 

B. SK Broadband

 

Item

   Amount (Won)      Calculation Period

(i) Weighted average of the share prices for the most recent one-month period

     4,650       February 23, 2015 – March 19, 2015

(ii) Weighted average of the share prices for the most recent one-week period

     4,827       March 13, 2015 – March 19, 2015

(iii) Closing share price on the calculation date

     4,990       March 19, 2015

Reference share price [((i) + (ii) + (iii)) / 3]

     4,822      

 

13


Note: The reference share price is the arithmetic mean of (i) the weighted average of the share prices for the most recent one-month period, (ii) the weighted average of the share prices for the most recent one-week period and (iii) the closing share price on the calculation date, which is the date prior to the board resolution regarding the Share Exchange [((i)+(ii)+(iii))/3].

ø The table below shows the share prices and trading volumes for the one-month period leading up to the calculation date of March 19, 2015.

 

Date

   Closing Price (Won)      Trading Volume (Shares)      Closing Price × Trading Volume
(Won)
 

February 23, 2015

     4,505         2,566,113         11,560,339,065   

February 24, 2015

     4,580         2,596,314         11,891,118,120   

February 25, 2015

     4,560         1,337,494         6,098,972,640   

February 26, 2015

     4,490         1,863,820         8,368,551,800   

February 27, 2015

     4,545         1,214,577         5,520,252,465   

March 2, 2015

     4,450         1,703,426         7,580,245,700   

March 3, 2015

     4,410         1,583,869         6,984,862,290   

March 4, 2015

     4,410         615,650         2,715,016,500   

March 5, 2015

     4,340         1,401,666         6,083,230,440   

March 6, 2015

     4,300         1,096,376         4,714,416,800   

March 9, 2015

     4,280         860,690         3,683,753,200   

March 10, 2015

     4,470         2,596,457         11,606,162,790   

March 11, 2015

     4,330         2,433,011         10,534,937,630   

March 12, 2015

     4,455         1,375,749         6,128,961,795   

March 13, 2015

     4,860         10,105,124         49,110,902,640   

March 16, 2015

     4,675         5,670,530         26,509,727,750   

March 17, 2015

     4,710         2,170,908         10,224,976,680   

March 18, 2015

     4,870         4,696,271         22,870,839,770   

March 19, 2015

     4,990         3,556,399         17,746,431,010   

Item

     Price (Won)  

Weighted average of the closing prices for the most recent one-month period

  

     4,650   

Weighted average of the closing prices for the most recent one-week period

  

     4,827   

 

3. Matters with Respect to the External Appraisal

Please see Clause 3 above.

CLAUSE 5. MATTERS RELATING TO APPRAISAL RIGHTS

 

1. Conditions for Exercising Appraisal Rights

 

A. Parent Company (SK Telecom)

Shareholders of SK Telecom dissenting from the Share Exchange are not granted any appraisal rights as it is intended that the Share Exchange will proceed in accordance with the procedures for a small-scale share swap set forth in Article 360-10 of the KCC.

 

14


Although SK Telecom intends that the Share Exchange will proceed in accordance with the procedures for a small-scale share swap, if written notices of dissent are given by shareholders that collectively hold 20% or more of the total number of issued and outstanding shares of SK Telecom between April 6, 2015 and April 20, 2015 (such period, the “Dissent Filing Period”), SK Telecom may not proceed with the Share Exchange as a small-scale share swap pursuant to Article 360-10(5) of the KCC. In such case, if SK Telecom does not provide SK Broadband a written notice of termination of the Share Exchange Agreement within 30 days after the end of the Dissent Filing Period, SK Telecom will need to receive approval for the Share Exchange Agreement through a general meeting of shareholders and SK Telecom will disclose the relevant schedule to shareholders in a timely manner. Notwithstanding the foregoing, the submission period for written notices of dissent by holders of SK Telecom’s American Depositary Receipts (“ADR”) is April 6, 2015 to April 16, 2015. SK Telecom’s ADR holders should contact Citibank Shareholder Services at 1-877-CITI-ADR (248-4237) to submit a written notice of dissent or for any other inquiries.

Investors should note that the Share Exchange may be cancelled if SK Telecom provides SK Broadband a written notice of termination of the Share Exchange Agreement within 30 days after the end of the Dissent Filing Period.

[Exercising Appraisal Rights Under Procedures for a General Exchange of Shares]

As set forth above, although SK Telecom intends that the Share Exchange will proceed in accordance with the procedures for a small-scale share swap, if written notices of dissent are given by shareholders that collectively hold 20% or more of the total number of issued and outstanding shares of SK Telecom within the Dissent Filing Period, SK Telecom may not proceed with the Share Exchange as a small-scale share swap pursuant to Article 360-10(5) of the KCC. If SK Telecom does not provide SK Broadband a written notice of termination of the Share Exchange Agreement within 30 days after the end of the Dissent Filing Period, SK Telecom will need to receive approval for the Share Exchange Agreement through a general meeting of shareholders, and appraisal rights will be granted to shareholders dissenting from the Share Exchange.

Pursuant to Article 360-5 of the KCC and Article 165-5 of the FSCMA, a dissenting shareholder of SK Telecom listed in the shareholder register as of the record date may exercise its appraisal rights with respect to all or a portion of the shares owned by such shareholder by providing SK Telecom with a written statement specifying the class and the number of shares with respect to which appraisal rights are being exercised within 20 days of the date of the resolution adopted at the related general meeting of shareholders (such period, the “SKT Appraisal Rights Exercise Period”) only in the event that such shareholder has provided SK Telecom with a written notice of its intent to dissent prior to the related general meeting of shareholders.

Pursuant to Article 165-5 of the FSCMA and Article 176-7 of its Enforcement Decree, appraisal rights will only be granted if (a) a shareholder can prove that the applicable shares owned by such shareholder were acquired prior to the public notice of the resolution of the board of directors relating to the Share Exchange, or the shareholder, despite having acquired such shares after such public notice of the resolution of the board of directors, can prove that, by the business day after the date of such public notice, (i) a purchase agreement for such shares had been executed, (ii) a loan agreement for such shares had been terminated, or (iii) a legal act relating to the acquisition of such shares had been taken, and (b) such shareholder has maintained the ownership of such shares until the date of the exercise of such appraisal rights. Appraisal rights will be lost with respect to shares that were sold and then repurchased during such timeframe. The exercise of appraisal rights may not be revoked after their exercise.

In addition, shareholders of SK Telecom that notify SK Telecom in writing of their intent to dissent from the resolution of the board of directors relating to the Share Exchange may not exercise appraisal rights if such shareholders vote in favor of the Share Exchange at the general meeting of shareholders. SK Telecom, as a listed company in the KRX KOSPI Market of the Korea Exchange, must purchase the shares in respect of which appraisal rights have been exercised within one month after the end date of the SKT Appraisal Rights Exercise Period.

 

15


Item

   Date
Business day after the date of the resolution of the board of directors    March 23, 2015
Record date    April 6, 2015

Dissent Filing Period

   April 6, 2015 – April 20, 2015 1)
SKT Appraisal Rights Exercise Period    To be determined 2)

 

1) The submission period for notification of an intent to dissent applicable to SK Telecom’s ADR holders is April 6, 2015 to April 16, 2015. In order to submit a written notice of dissent and for any other inquiries, please contact Citibank Shareholder Services at 1-877-CITI-ADR (248-4237).
2) As SK Telecom intends that the Share Exchange will proceed in accordance with the procedures for a small-scale share swap set forth in Article 360-10 of the KCC, the SKT Appraisal Rights Exercise Period is indicated as to be determined. If written notices of dissent are given by shareholders that collectively hold 20% or more of the total number of issued and outstanding shares of SK Telecom within the Dissent Filing Period and SK Telecom does not provide SK Broadband a written notice of termination of the Share Exchange Agreement within 30 days after the end of the Dissent Filing Period, SK Telecom will need to receive approval for the Share Exchange Agreement through a general meeting of shareholders and SK Telecom will disclose the relevant schedule to shareholders in a timely manner.

 

B. SK Broadband

Pursuant to Article 360-5 of the KCC and Article 165-5 of the FSCMA, a dissenting shareholder of SK Broadband listed in the shareholder register as of the record date may exercise its appraisal rights with respect to all or a portion of the shares owned by such shareholder by providing SK Broadband with a written statement specifying the class and the number of shares with respect to which appraisal rights are being exercised within 20 days after the date of the resolution adopted at the general meeting of shareholders (such period, the “SKB Appraisal Rights Exercise Period”), only in the event that such shareholder has provided SK Broadband in writing its intent to dissent prior to the related general meeting of shareholders.

Pursuant to Article 165-5 of the FSCMA and Article 176-7 of its Enforcement Decree, appraisal rights will only be granted if (a) a shareholder can prove that the applicable shares owned by such shareholder were acquired prior to the public notice of the resolution of the board of directors relating to the Share Exchange, or the shareholder, despite having acquired such shares after such public notice of the resolution of the board of directors, can prove that, by the business day after the date of such public notice, (i) a purchase agreement for such shares had been executed, (ii) a loan agreement for such shares had been terminated, or (iii) a legal act relating to the acquisition of such shares had been taken, and (b) such shareholder has maintained the ownership of such shares until the date of the exercise of such appraisal rights. Appraisal rights will be lost with respect to shares that were sold and then repurchased during such timeframe. The exercise of appraisal rights may not be revoked after their exercise.

In addition, shareholders of SK Broadband that notify SK Broadband in writing of their intent to dissent from the resolution of the board of directors relating to the Share Exchange may not exercise appraisal rights if such shareholders vote in favor of the Share Exchange at the general meeting of shareholders. SK Broadband, as a listed company in the KRX KOSDAQ Market of the Korea Exchange, must purchase the shares in respect of which appraisal rights have been exercised within one month after the end date of the SKB Appraisal Rights Exercise Period.

 

Item

   Date

Business day after the date of the resolution of the Board of Directors

   March 23, 2015
Record date    April 6, 2015
Period for notification of an intent to dissent    April 21, 2015 – May 5, 2015 1)
SKB Appraisal Rights Exercise Period    May 6, 2015 – May 26, 2015 2)

 

16


1) Beneficial owners that have entrusted their shares to a securities company (i.e., a financial investment business entity) must notify such securities company of their intent to dissent. In such case, the intent to dissent must be conveyed no later than three business days prior to the date of the general meeting of shareholders. The securities company must collect and convey such information to the Korea Securities Depositary, (the “KSD”) two business days prior to the date of the general meeting of shareholders. The KSD must notify SK Broadband of the beneficial owners’ intent to dissent on behalf of such owners prior to the date of the general meeting of shareholders. For more information, please consult with such securities company entrusted with shares.
2) Beneficial owners that have entrusted their shares to a securities company may file with such securities company a written application for appraisal rights specifying the class and the number of shares with respect to which appraisal rights are being exercised. In such case, beneficial owners must convey such written statement to such securities company no later than two business days prior to the end date of the SKB Appraisal Right Exercise Period, and the KSD must notify SK Broadband on behalf of such owners. For more information, please consult with such securities company entrusted with shares.

 

2. Calculation of the Relevant Share Purchase Price

 

A. Common Shares of SK Telecom

Shareholders of SK Telecom dissenting from the Share Exchange are not granted any appraisal rights as it is intended that the Share Exchange will proceed in accordance with the procedures for a small-scale share swap set forth in Article 360-10 of the KCC.

Although SK Telecom intends that the Share Exchange will proceed in accordance with the procedures for a small-scale share swap, if written notices of dissent are given by shareholders that collectively hold 20% or more of the total number of issued and outstanding shares of SK Telecom during the Dissent Filing Period, SK Telecom may not proceed with the Share Exchange as a small-scale share swap pursuant to Article 360-10(5) of the KCC. In such case, if SK Telecom does not provide SK Broadband a written notice of termination of the Share Exchange Agreement within 30 days after the end of the Dissent Filing Period, SK Telecom will need to receive approval for the Share Exchange Agreement through a general meeting of shareholders and SK Telecom will disclose the relevant schedule to shareholders in a timely manner.

Investors should note that the Share Exchange may be cancelled if SK Telecom provides SK Broadband a written notice of termination of the Share Exchange Agreement within 30 days after the end of the Dissent Filing Period.

[Exercising Appraisal Rights Under Procedures for a General Exchange of Shares]

As set forth above, although SK Telecom intends that the Share Exchange will proceed in accordance with the procedures for a small-scale share swap, if written notices of dissent are given by shareholders that collectively hold 20% or more of the total number of issued and outstanding shares of SK Telecom within the Dissent Filing Period, SK Telecom may not proceed with the Share Exchange as a small-scale share swap pursuant to Article 360-10(5) of the KCC. If SK Telecom does not provide SK Broadband a written notice of termination of the Share Exchange Agreement within 30 days after the end of the Dissent Filing Period, SK Telecom will need to receive approval for the Share Exchange Agreement through a general meeting of shareholders, and appraisal rights will be granted to shareholders dissenting from the Share Exchange.

 

17


In accordance with Article 165-5(3) of the FSCMA, the share purchase price should be determined through consultation between the corporation and shareholders. If no agreement is reached on the share purchase price, pursuant to Article 176-7(2) of the FSCMA, the share purchase price shall be determined based on the trading price of the applicable shares on the date prior to the relevant resolution of the board of directors. However, if the corporation or a shareholder exercising the appraisal rights contests such share purchase price, it may request a court determination of the share purchase price. Accordingly, shareholders who contest the share purchase price should note that they are entitled to request a court determination of the share purchase price.

The expected share purchase price of SK Telecom determined in accordance with the method prescribed by Article 176-7(2) of the FSCMA is set forth below, and SK Telecom has determined that such price is the price proposed to its shareholders for consultation.

 

Item

  

Description

Company’s proposed share purchase price for consultation    Won 283,121
Calculation criteria    Determined in accordance with the method prescribed by Article 165-5 of the FSCMA and Article 176-7 of its Enforcement Decree
If no agreement is reached on the share purchase price    In accordance with Article 165-5(3) of the FSCMA, if SK Telecom or the shareholder exercising the appraisal rights contests such share purchase price, it may request a court determination of the share purchase price.

Note: In the event that the shareholders contesting the above expected share purchase price request determination of the share purchase price by a court, such request will not affect the Share Exchange procedures, and the purchase price determined by such request shall have effect only with respect to those shareholders who made such request.

ø Method of determination of expected share purchase price (calculation date: one day prior to the resolution of the board of directors (March 19, 2015))

 

Item

   Amount (Won)      Calculation Period

(i) Weighted average of the share prices for the most recent two-month period

     283,563       January 20, 2015 – March 19, 2015

(ii) Weighted average of the share prices for the most recent one-month period

     281,857       February 23, 2015 – March 19, 2015

(iii) Weighted average of the share prices for the most recent one-week period

     283,944       March 13, 2015 – March 19, 2015

Purchase price [((i) + (ii) + (iii)) / 3]

     283,121       —  

Note: The expected share purchase price is the arithmetic mean of (i) the weighted average of the share prices for the most recent two-month period, (ii) the weighted average of the share prices for the most recent one-month period and (iii) the weighted average of the share prices for the most recent one-week period [((i)+(ii)+(iii))/3].

ø The table below shows the share prices and trading volumes for the two-month period leading up to the calculation date of March 19, 2015.

 

Date

   Closing Price (Won)      Trading Volume (Shares)      Closing Price × Trading Volume
(Won)
 

January 20, 2015

     273,500         115,230         31,515,405,000   

January 21, 2015

     275,000         106,196         29,203,900,000   

January 22, 2015

     277,000         96,392         26,700,584,000   

January 23, 2015

     283,500         193,495         54,855,832,500   

January 26, 2015

     290,000         205,547         59,608,630,000   

January 27, 2015

     288,000         275,117         79,233,696,000   

January 28, 2015

     285,500         220,474         62,945,327,000   

January 29, 2015

     284,000         192,057         54,544,188,000   

 

18


Date

   Closing Price (Won)      Trading Volume (Shares)      Closing Price × Trading Volume
(Won)
 

January 30, 2015

     289,000         295,975         85,536,775,000   

February 2, 2015

     288,000         93,772         27,006,336,000   

February 3, 2015

     282,500         187,340         52,923,550,000   

February 4, 2015

     280,000         116,462         32,609,360,000   

February 5, 2015

     278,000         115,752         32,179,056,000   

February 6, 2015

     278,000         108,234         30,089,052,000   

February 9, 2015

     277,000         100,144         27,739,888,000   

February 10, 2015

     274,000         103,784         28,436,816,000   

February 11, 2015

     280,500         158,267         44,393,893,500   

February 12, 2015

     289,500         174,848         50,618,496,000   

February 13, 2015

     295,500         123,373         36,456,721,500   

February 16, 2015

     301,000         172,874         52,035,074,000   

February 17, 2015

     295,500         87,843         25,957,606,500   

February 23, 2015

     291,000         72,997         21,242,127,000   

February 24, 2015

     291,000         119,745         34,845,795,000   

February 25, 2015

     288,000         121,071         34,868,448,000   

February 26, 2015

     287,500         125,510         36,084,125,000   

February 27, 2015

     286,500         171,702         49,192,623,000   

March 2, 2015

     284,000         96,975         27,540,900,000   

March 3, 2015

     283,500         109,686         31,095,981,000   

March 4, 2015

     288,000         135,798         39,109,824,000   

March 5, 2015

     290,000         135,499         39,294,710,000   

March 6, 2015

     283,000         207,854         58,822,682,000   

March 9, 2015

     279,000         190,007         53,011,953,000   

March 10, 2015

     270,500         197,630         53,458,915,000   

March 11, 2015

     269,000         183,298         49,307,162,000   

March 12, 2015

     270,000         257,139         69,427,530,000   

March 13, 2015

     283,000         216,449         61,255,067,000   

March 16, 2015

     280,000         123,012         34,443,360,000   

March 17, 2015

     279,500         106,096         29,653,832,000   

March 18, 2015

     281,500         111,038         31,257,197,000   

March 19, 2015

     290,500         218,533         63,483,836,500   

Item

     Price (Won)  

Weighted average of the closing prices for the most recent two-month period

   

     283,563   

Weighted average of the closing prices for the most recent one-month period

   

     281,857   

Weighted average of the closing prices for the most recent one-week period

   

     283,944   

 

B. Common shares of SK Broadband

 

Item

  

Description

Company’s proposed share purchase price for consultation    Won 4,645
Calculation criteria    Determined in accordance with the method prescribed by Article 165-5 of the FSCMA and Article 176-7 of its Enforcement Decree
If no agreement is reached on the share purchase price    In accordance with Article 165-5(3) of the FSCMA, if SK Broadband or the shareholder exercising the appraisal rights contests such share purchase price, it may request a court determination of the share purchase price.

 

19


Note: In the event that the shareholders contesting the above expected share purchase price request determination of the share purchase price by a court, such request will not affect the Share Exchange procedures, and the purchase price determined by such request shall have effect only with respect to those shareholders who made such request.

ø Method of determination of expected share purchase price (calculation date: one day prior to the resolution of the board of directors (i.e., March 19, 2015))

 

Item

   Amount (Won)      Calculation Period

(i) Weighted average of the share prices for the most recent two-month period

     4,457       January 20, 2015 – March 19, 2015

(ii) Weighted average of the share prices for the most recent one-month period

     4,650       February 23, 2015 – March 19, 2015

(iii) Weighted average of the share prices for the most recent one-week period

     4,827       March 13, 2015 – March 19, 2015

Purchase price [((i) + (ii) + (iii)) / 3]

     4,645      

Note: The expected share purchase price is the arithmetic mean of (i) the weighted average of the share prices for the most recent two-month period, (ii) the weighted average of the share prices for the most recent one-month period and (iii) the weighted average of the share prices for the most recent one-week period [((i)+(ii)+(iii))/3].

ø The table below shows the share prices and trading volumes for the two-month period leading up to the calculation date of March 19, 2015.

 

Date

   Closing Price (Won)      Trading Volume (Shares)      Closing Price × Trading Volume
(Won)
 

January 20, 2015

     4,390         987,115         4,333,434,850   

January 21, 2015

     4,220         1,304,072         5,503,183,840   

January 22, 2015

     4,195         701,813         2,944,105,535   

January 23, 2015

     4,325         921,373         3,984,938,225   

January 26, 2015

     4,220         968,945         4,088,947,900   

January 27, 2015

     4,180         682,170         2,851,470,600   

January 28, 2015

     4,230         1,002,533         4,240,714,590   

January 29, 2015

     4,295         1,445,337         6,207,722,415   

January 30, 2015

     4,245         1,429,872         6,069,806,640   

February 2, 2015

     4,125         1,633,790         6,739,383,750   

February 3, 2015

     4,025         3,648,583         14,685,546,575   

February 4, 2015

     3,980         2,356,965         9,380,720,700   

February 5, 2015

     3,925         1,825,198         7,163,902,150   

February 6, 2015

     4,005         2,136,654         8,557,299,270   

February 9, 2015

     4,030         1,335,062         5,380,299,860   

February 10, 2015

     4,035         1,129,048         4,555,708,680   

February 11, 2015

     4,125         806,491         3,326,775,375   

February 12, 2015

     4,125         1,204,272         4,967,622,000   

February 13, 2015

     4,200         1,140,015         4,788,063,000   

February 16, 2015

     4,200         913,417         3,836,351,400   

February 17, 2015

     4,400         4,372,894         19,240,733,600   

 

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Date

   Closing Price (Won)      Trading Volume (Shares)      Closing Price × Trading Volume
(Won)
 

February 23, 2015

     4,505         2,566,113         11,560,339,065   

February 24, 2015

     4,580         2,596,314         11,891,118,120   

February 25, 2015

     4,560         1,337,494         6,098,972,640   

February 26, 2015

     4,490         1,863,820         8,368,551,800   

February 27, 2015

     4,545         1,214,577         5,520,252,465   

March 2, 2015

     4,450         1,703,426         7,580,245,700   

March 3, 2015

     4,410         1,583,869         6,984,862,290   

March 4, 2015

     4,410         615,650         2,715,016,500   

March 5, 2015

     4,340         1,401,666         6,083,230,440   

March 6, 2015

     4,300         1,096,376         4,714,416,800   

March 9, 2015

     4,280         860,690         3,683,753,200   

March 10, 2015

     4,470         2,596,457         11,606,162,790   

March 11, 2015

     4,330         2,433,011         10,534,937,630   

March 12, 2015

     4,455         1,375,749         6,128,961,795   

March 13, 2015

     4,860         10,105,124         49,110,902,640   

March 16, 2015

     4,675         5,670,530         26,509,727,750   

March 17, 2015

     4,710         2,170,908         10,224,976,680   

March 18, 2015

     4,870         4,696,271         22,870,839,770   

March 19, 2015

     4,990         3,556,399         17,746,431,010   

Item

     Price (Won)  

Weighted average of the closing prices for the most recent two-month period

  

     4,457   

Weighted average of the closing prices for the most recent one-month period

  

     4,650   

Weighted average of the closing prices for the most recent one-week period

  

     4,827   

 

3. Procedures, Method, Timeframe and Location for Exercising Appraisal Rights

 

A. SK Telecom

Please see Clause 5.1.B. above.

 

B. SK Broadband

 

(1) Procedures for Exercising Appraisal Rights

 

¨ Procedures for Expressing Intent to Dissent

Pursuant to Article 360-5 of the KCC and Article 165-5 of the FSCMA, a shareholder of SK Broadband listed in the shareholder register as of the record date (April 6, 2015) who dissents from the Share Exchange shall provide SK Broadband in writing its intent to dissent during the period from the date of public notice of the general meeting of shareholders (April 21, 2015) to one day prior to the date of the general meeting of shareholders (May 5, 2015).

Beneficial owners that have entrusted their shares to a securities company must notify such securities company of their intent to dissent. In such case, the intent to dissent must be conveyed no later than three business days prior to the date of the general meeting of shareholders. The securities company must collect and convey such information to the KSD two business days prior to the date of the general meeting of shareholders. The KSD must notify SK Broadband of the beneficial owners’ intent to dissent on behalf of such owners prior to the date of the general meeting of shareholders.

 

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¨ Method of Exercising Appraisal Rights

Pursuant to Article 360-5 of the KCC and Article 165-5 of the FSCMA, a shareholder who has expressed its intent to dissent from the Share Exchange may exercise its appraisal rights with respect to shares owned by such shareholder by providing SK Broadband a written statement specifying the class and the number of shares with respect to which appraisal rights are being exercised during the SKB Appraisal Rights Exercise Period, which is the period of 20 days after the date of the resolution adopted at the general meeting of shareholders.

Beneficial owners that have entrusted their shares to a securities company may file with such securities company a written application for appraisal rights specifying the class and the number of shares with respect to which appraisal rights are being exercised. In such case, beneficial owners must convey such written statement to such securities company no later than two business days prior to the end date of the SKB Appraisal Rights Exercise period, and the KSD must notify SK Broadband on behalf of such owners.

 

(2) Exercise Period: From May 6, 2015 to May 26, 2015

Pursuant to Article 360-5 of the KCC, a shareholder who has provided SK Broadband in writing notice of its intent to dissent from the resolution of the board of directors relating to the Share Exchange prior to the general meeting of shareholders may exercise its appraisal rights within 20 days after the date of the resolution adopted at the general meeting of shareholders.

 

(3) Filing Location

 

Item

  

Location

   Remarks
SK Broadband    SK Building, 24, Toegye-ro, Jung-gu, Seoul 100-711, Korea    —  

 

4. Impact of the Appraisal Rights on the Effectiveness of the Share Exchange Agreement

 

A. SK Telecom

Shareholders of SK Telecom dissenting from the Share Exchange are not granted any appraisal rights as it is intended that the Share Exchange will proceed in accordance with the procedures for a small-scale share swap set forth in Article 360-10 of the KCC. Although SK Telecom intends that the Share Exchange will proceed in accordance with the procedures for a small-scale share swap, if written notices of dissent are given by shareholders that collectively hold 20% or more of the total number of issued and outstanding shares of SK Telecom within the Dissent Filing Period, SK Telecom may be required to follow the procedures for a general exchange of shares pursuant to Article 360-10(5) of the KCC. In such case, appraisal rights will be granted to shareholders of SK Telecom dissenting from the Share Exchange in accordance with Article 360-5 of the KCC.

If written notices of dissent are given by shareholders that collectively hold 20% or more of the total number of issued and outstanding shares of SK Telecom with respect to the Share Exchange (for which the approval of the general meeting of shareholders is substituted by the approval of the board of directors), SK Telecom may terminate the Share Exchange Agreement by notifying SK Broadband in writing within 30 days after the end of the Dissent Filing Period.

 

B. SK Broadband

Pursuant to Article 360-5 of the KCC and Article 165-5 of the FSCMA, a shareholder who has expressed its intent to dissent from the Share Exchange may exercise its appraisal rights with respect to shares owned by such shareholder by providing SK Broadband a written statement specifying the class and the number of shares with respect to which appraisal rights are being exercised during the SKB Appraisal Rights Exercise Period, which is the period of 20 days after the date of the resolution adopted at the general meeting of shareholders. Such exercise of appraisal rights will not impact the Share Exchange.

 

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5. Funding, Schedule, Method, etc. of Payment of the Share Purchase Price

 

A. SK Telecom

Shareholders of SK Telecom dissenting from the Share Exchange are not granted any appraisal rights as it is intended that the Share Exchange will proceed in accordance with the procedures for a small-scale share swap set forth in Article 360-10 of the KCC.

Although SK Telecom intends that the Share Exchange will proceed in accordance with the procedures for a small-scale share swap, if written notices of dissent are given by shareholders that collectively hold 20% or more of the total number of issued and outstanding shares of SK Telecom within the Dissent Filing Period, SK Telecom may not proceed with the Share Exchange as a small-scale share swap pursuant to Article 360-10(5) of the KCC. In such case, if SK Telecom does not provide SK Broadband a written notice of termination of the Share Exchange Agreement within 30 days after the end of the Dissent Filing Period, SK Telecom will need to receive approval for the Share Exchange Agreement through a general meeting of shareholders and SK Telecom will disclose the relevant schedule to shareholders in a timely manner. Notwithstanding the foregoing, the submission period for written notices of dissent by SK Telecom’s ADR holders is April 6, 2015 to April 16, 2015. SK Telecom’s ADR holders should contact Citibank Shareholder Services at 1-877-CITI-ADR (248-4237) to submit a written notice of dissent or for any other inquiries.

Investors should note that the Share Exchange may be cancelled if SK Telecom provides SK Broadband a written notice of termination of the Share Exchange Agreement within 30 days after the end of the Dissent Filing Period.

[Funding, Schedule, Method, etc. of Payment of the Share Purchase Price Under the Procedures for a General Exchange of Shares of the SK Telecom]

 

(1) Funding of the Share Purchase Price

SK Telecom expects to fund the share purchase price from available funds retained by SK Telecom, etc.

 

(2) Payment Schedule for the Share Purchase Price

Payment of the share purchase price is expected to be made within one month after the last day of the SKT Appraisal Rights Exercise Period.

 

(3) Payment Method for the Share Purchase Price

 

    Shareholders registered in shareholder register: by transfer of funds to the registered bank accounts of such shareholders

 

    Beneficial owners that have entrusted their shares to a securities company: by transfer of funds to the registered trading accounts of the beneficial owners at the relevant securities companies

 

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(4) Noteworthy Matters Relating to the Exercise of Appraisal Rights

Please note that matters relating to the share purchase price and the exercise of appraisal rights are subject to change following consultation with the shareholders, if needed. In the event appraisal rights are exercised by the shareholders dissenting from the Share Exchange, the resulting transaction, as an over-the-counter trade, may subject the exercising shareholders to corporate tax or income tax with respect to the net realized gain (i.e., the sale price less the acquisition cost and transaction costs). For domestic corporations, such net realized gain is subject to corporate tax as income in the applicable business year, and Korean residents are subject to capital gains tax at the rate of 22% (including local income tax) of the net realized gain. However, in the event a resident shareholder is a major shareholder pursuant to the Income Tax Act and has held its shares for less than one year, capital gains tax at the rate of 33% (including local income tax) will be applicable. For a foreign corporation or a non-resident shareholder, corporate or income tax equal to the lower of 11% (including local income tax) of the sale price or 22% (including local income tax) of the net realized gain will generally be the applicable corporate or income tax. However, the actual tax payable is subject to change according to specific circumstances, such as the existence of a business establishment of such shareholder in Korea or tax treaties between Korea and the applicable country of residence of the foreign corporation or non-resident shareholder. In addition, in the event appraisal rights are exercised, a securities transaction tax of 0.5% of the sale price will be applicable.

 

(5) Disposal of Treasury Shares Acquired as a Result of Exercise of Appraisal Rights

Treasury shares acquired as a result of the exercise of appraisal rights are expected to be disposed of within three years after the acquisition of such shares in accordance with Article 165-5(4) of the FSCMA and Article 176-7(3) of its Enforcement Decree.

 

B. SK Broadband

 

(1) Funding of the Share Purchase Price

SK Broadband expects to fund the share purchase price from available funds retained by SK Broadband, etc.

 

(2) Payment Schedule for the Share Purchase Price

Payment of the share purchase price is expected to be made within one month after the last day of the SKB Appraisal Rights Exercise Period.

 

(3) Payment Method for the Share Purchase Price

 

    Shareholders registered in shareholder register: by transfer of funds to the registered bank accounts of such shareholders

 

    Beneficial owners that have entrusted their shares to a securities company: by transfer of funds to the registered trading accounts of the beneficial owners at the relevant securities companies

 

(4) Noteworthy Matters Relating to the Exercise of Appraisal Rights

Please note that matters relating to the share purchase price and the exercise of appraisal rights are subject to change following consultation with the shareholders, if needed. In the event appraisal rights are exercised by the shareholders dissenting from the Share Exchange, the resulting transaction, as an over-the-counter trade, may subject the exercising shareholders to corporate tax or income tax with respect to the net realized gain (i.e., the sale price less the acquisition cost and transaction costs). For domestic corporations, such net realized gain is subject to corporate tax as income in the applicable business year, and Korean residents are subject to capital gains tax at the rate of 22% (including local income tax) of the net realized gain. However, in the event a resident shareholder is a major shareholder pursuant to the Income Tax Act and has held its shares for less than one year, capital gains tax at the rate of 33% (including local income tax) will be applicable. For a foreign corporation or a non-resident shareholder, corporate or income tax equal to the lower of 11% (including local income tax) of the sale price or 22% (including local income tax) of the net realized gain will generally be the applicable corporate or income tax. However, the actual tax payable is subject to change according to specific circumstances, such as the existence of a business establishment of such shareholder in Korea or tax treaties between Korea and the applicable country of residence of the foreign corporation or non-resident shareholder. In addition, in the event appraisal rights are exercised, a securities transaction tax of 0.5% of the sale price will be applicable.

 

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(5) Disposal of Treasury Shares Acquired as a Result of Exercise of Appraisal Rights

Treasury shares acquired as a result of the exercise of appraisal rights are expected to be transferred to SK Telecom in accordance with the share transfer agreement between SK Telecom and SK Broadband, and treasury shares acquired after the date of the Share Exchange are expected to be transferred to SK Telecom in accordance with the Share Exchange, which will be exchanged for common shares of SK Telecom. As a result of such transactions, SK Broadband may be exposed to a possible violation of Article 342-2 of the KCC and Articles 8-2(5) and 9 of the Fair Trade Act, and thus SK Broadband plans to dispose of such shares promptly.

 

6. Grounds for Non-recognition of or Limitations on Appraisal Rights

Appraisal rights will only be granted if (a) the applicable shares owned by such shareholder were acquired prior to the public notice of the resolution of the board of directors, or the shareholder, despite having acquired such shares after such public notice of the resolution of the board of directors, can prove that, by the business day after the date of such public notice, (i) a purchase agreement for such shares had been executed, (ii) a loan agreement for such shares had been terminated, or (iii) a legal act relating to the acquisition of such shares had been taken, and (b) such shareholder has maintained the ownership of such shares until the date of the exercise of such appraisal rights. Appraisal rights will be lost with respect to shares that were sold and then repurchased during such timeframe. The exercise of appraisal rights may not be revoked after their exercise.

In addition, if the Share Exchange Agreement is no longer effective or terminated due to certain events, then the appraisal rights that were exercised will no longer be effective, and SK Telecom and SK Broadband may reject the purchase of shares for which the appraisal rights were exercised. For further information regarding the events that may lead to termination of the Share Exchange Agreement or the Share Exchange Agreement being no longer effective, please refer to our future filings with the U.S. Securities and Exchange Commission to be filed on Form CB.

CLAUSE 6. RELATIONSHIP OF THE PARTIES

 

1. Affiliates and Subsidiaries

 

A. Relationship of the Affiliates and Subsidiaries

The parties of the Share Exchange belong to the SK Group in accordance with the Korean Monopoly Regulation and Fair Trade Act (the “Fair Trade Act”), and SK Telecom Co owns 50.56% (149,638,354 shares) of the issued and outstanding shares of SK Broadband as of March 20, 2015.

 

B. Directors and Executive Officers with Concurrent Offices

 

Name

 

SK Telecom

 

SK Broadband

WonYoung Yun   Head of Division   Non-executive director
Jong-Won Kim   Head of Division   Head of Division

 

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2. Transactions between the Parties

 

A. Major Business Transactions between SK Telecom and SK Broadband

 

(1) Sales

 

               (Unit: in millions of Won)  

Company name

  

Transaction Period

   Counterparty   

Transaction

   Transaction
amount
 

SK Telecom

   2011.01.01 ~ 12.31    SK Broadband
  

Leased line, interconnection fees, etc.

     90,728   
  

2012.01.01 ~ 12.31

           114,068   
   2013.01.01 ~ 12.31            105,166   
   2014.01.01 ~ 12.31            141,640   

Note: The amounts are derived from SK Telecom’s audited financial statements for the years 2011, 2012, 2013 and 2014.

 

(2) Purchases

 

               (Unit: in millions of Won)  

Company name

  

Transaction Period

   Counterparty   

Transaction

   Transaction
amount
 

SK Telecom

   2011.01.01 ~ 12.31    SK Broadband
  

Leased line, interconnection fees, etc.

     440,495   
   2012.01.01 ~ 12.31            559,926   
   2013.01.01 ~ 12.31            570,426   
   2014.01.01 ~ 12.31            588,982   

Note: The amounts are derived from SK Telecom’s audited financial statements for the years 2011, 2012, 2013 and 2014.

 

B. Assets and Liabilities from Transactions

 

(1) Accounts Receivable

 

               (Unit: in millions of Won)  

Company name

   Date    Counterparty   

Transaction

   Transaction
amount
 

SK Telecom

   2011. 12. 31    SK Broadband
  

Leased line, interconnection fees, etc.

     8,225   
   2012. 12. 31            2,493   
   2013. 12. 31            4,779   
   2014. 12. 31                3,236   

Note: The amounts are derived from SK Telecom’s audited financial statements for the years 2011, 2012, 2013 and 2014.

 

(2) Accounts Payable

 

               (Unit: in millions of Won)  

Company name

   Date    Counterparty   

Transaction

   Transaction
amount
 
SK Telecom    2011. 12. 31    SK Broadband    Leased line, interconnection fees, etc.      118,687   
   2012. 12. 31            73,483   
   2013. 12. 31            81,243   
   2014. 12. 31            38,432   

Note: The amounts are derived from SK Telecom’s audited financial statements for the years 2011, 2012, 2013 and 2014.

 

26


C. Guarantees of Debt

Not applicable

 

3. Transactions with Major Shareholders

Not applicable

 

4. Other Relationships including Competitive or Complementary Relationships

SK Telecom resells SK Broadband’s fixed-line products such as broadband Internet and IPTV. Such resale of fixed-line products benefits its customers by expanding the options available to consumers and reducing costs through discounts for bundled services.

The purpose of this resale is to more flexibly respond to the competitive fixed-mobile bundled products market, and the price between SK Telecom and SK Broadband is calculated using fair and reasonable standards.

As the market share of telecommunications service providers within the broadband Internet market currently remains relatively unchanged (e.g., the market share of SK Broadband increased to 25.1% at the end of 2014 from 24.1% at the end of 2012), bundled services through resale by SK Telecom provides for lower prices to consumers as well as convenience.

CLAUSE 7. OTHER MATTERS RELATING TO PROTECTION OF INVESTORS

 

1. Possibility of Listing and Delisting New Shares

 

A. Since there will be no new shares of SK Telecom issued in connection with the Share Exchange, there will be no listing of new shares.

 

B. Back door listing is not applicable to the Share Exchange. Subsequent to the Share Exchange, SK Telecom will be the parent company of SK Broadband with 100% ownership and will remain a listed corporation on the KRX KOSPI Market of the Korea Exchange, and SK Broadband will become a wholly-owned subsidiary of SK Telecom and will be delisted from the KRX KOSDAQ Market of the Korea Exchange.

 

2. Put-back Options Relating to Share Exchange

Not applicable

 

3. Other Matters Necessary for an Investment Decision

 

A. Share Exchange Agreement – Where it would no longer be effective

In the event that the agenda for the approval of the Share Exchange Agreement is voted against by the boards of directors or at the general meeting of shareholders, the Share Exchange Agreement shall lose effectiveness retroactively.

 

B. Share Exchange Agreement – Amendment or Termination

 

27


The Share Exchange Agreement may be amended or terminated in accordance with the following terms.

 

(1) Following the execution of the Share Exchange Agreement and prior to the Share Exchange Date, in the event any matter related to the terms of the Share Exchange Agreement is in breach of applicable laws and/or accounting standards, SK Telecom and SK Broadband may amend the Share Exchange Agreement by written agreement to comply with such applicable laws and/or accounting standards.

 

(2) Following the execution of the Share Exchange Agreement and prior to the Share Exchange Date, in the event any of the following occurs, SK Telecom and SK Broadband may by mutual written agreement terminate or amend the Share Exchange Agreement:

 

¨ a natural disaster or other material change to the assets and operation of SK Telecom or SK Broadband;

 

¨ failure to obtain approvals necessary for the Share Exchange from the government or related agencies or any breach of applicable law due to the Share Exchange which cannot be cured; or

 

¨ other causes which make it impossible to maintain the Share Exchange Agreement, including the unfairness of the share exchange ratio.

 

(3) Following the execution of the Share Exchange Agreement, if written notices of dissent are given by shareholders that collectively hold 20% or more of the total number of issued and outstanding shares of SK Telecom with respect to the Share Exchange (for which the approval of the general meeting of shareholders is substituted by the approval of the board of directors), SK Telecom may terminate the Share Exchange Agreement by notifying SK Broadband in writing within 30 days after the end of the Dissent Filing Period.

 

(4) SK Telecom and SK Broadband may enter into separate agreements for matters requiring agreement in connection with the Share Exchange and such separate agreements shall be deemed part of the Share Exchange Agreement.

 

C. In the event that the events set forth in A. or B. occur, such that the Share Exchange Agreement is no longer effective or terminated, then the appraisal rights that were exercised will no longer be effective, and SK Telecom and SK Broadband may reject the purchase of shares for which the appraisal rights were exercised.

 

D. Resolution of Board of Directors for the Share Exchange of the Parties

 

    SK Telecom

As SK Telecom intends to proceed with the Share Exchange as a small-scale share swap in accordance with Article 360-10 of the KCC, the approval of the board of directors for the Share Exchange may substitute for the approval of a general meeting of shareholders in accordance with Article 360-3(1) of the KCC. However, in the event that shareholders that collectively hold 20% or more of the total issued shares of SK Telecom dissent, this small-scale share swap procedure will be replaced by a general share exchange procedure. In this case, pursuant to Articles 360-3(1), 360-3(2) and 434 of the KCC, a special resolution of the general meeting of shareholders is required, and the approval of two-thirds of the voting rights of the participating shareholders and one-third of the issued shares is required.

 

    SK Broadband

Pursuant to Articles 360-3(1), 360-3(2) and 434 of the KCC, a special resolution of the general meeting of shareholders is required, and the approval of two-thirds of the voting rights of the participating shareholders and one-third of the issued shares is required.

 

28


[Excerpts from the Share Exchange Agreement]

Article 4 Approval of Share Exchange

 

  ¨ SK Telecom shall conduct the Share Exchange by approval of the meeting of the board of directors to be held on May 6, 2015 in lieu of a general meeting of shareholders held in accordance with Article 360-3(1) of the KCC, pursuant to Article 360-10 of the KCC.

 

  ¨ SK Broadband shall conduct the Share Exchange by approval of the general meeting of shareholders to be held on May 6, 2015 pursuant to Article 360-3(1) of the KCC.

 

  ¨ Notwithstanding paragraphs 1 and 2 above, to the extent necessary for the process of the Share Exchange, the parties may change the above dates upon mutual consultation.

Article 8 Effectiveness

The Share Exchange Agreement shall become effective upon execution provided, however, that in the event this Agreement fails to be approved at the meeting of the board of directors of SK Telecom or the general meeting of shareholders of SK Broadband held pursuant to Article 4, the Share Exchange Agreement shall lose effectiveness retroactively. In the event the Share Exchange Agreement loses effectiveness pursuant to this Article, neither SK Telecom nor SK Broadband shall seek indemnification for such loss of effectiveness against the party who caused such loss.

Article 9 Amendment and Termination

 

  ¨ Following the execution of the Share Exchange Agreement and prior to the Share Exchange Date, in the event any matter related to the terms of the Share Exchange Agreement is in breach of applicable laws and/or accounting standards, SK Telecom and SK Broadband may amend the Share Exchange Agreement by written agreement to comply with such applicable laws and/or accounting standards.

 

  ¨ Following the execution of the Share Exchange Agreement and prior to the Share Exchange Date, in the event any of the following occurs, SK Telecom and SK Broadband may by mutual written agreement terminate or amend the Share Exchange Agreement:

 

  1. a natural disaster or other material change to the assets and operation of SK Telecom or SK Broadband;

 

  2. failure to obtain approvals necessary for the Share Exchange from the government or related agencies or any breach of applicable law due to the Share Exchange which cannot be cured; or

 

  3. other causes which make it impossible to maintain the Share Exchange Agreement, including the unfairness of the share exchange ratio.

 

  ¨ Following the execution of the Share Exchange Agreement, if written notices of dissent are given by shareholders that collectively hold 20% or more of the total number of issued and outstanding shares of SK Telecom with respect to the Share Exchange (for which the approval of the general meeting of shareholders is substituted by the approval of the board of directors), SK Telecom may terminate the Share Exchange Agreement by notifying SK Broadband in writing within 30 days after the end of the Dissent Filing Period.

 

  ¨ SK Telecom and SK Broadband may enter into separate agreements for matters requiring agreement in connection with the Share Exchange and such separate agreements shall be deemed part of the Share Exchange Agreement.

 

E. Disclosure of Share Exchange Agreement, etc.

In accordance with Article 360-4(1) of the KCC, the following documents shall be made available at SK Telecom’s headquarters during the period between the date that is two weeks prior to the date of SK Telecom’s board of directors meeting in lieu of a general meeting of shareholders and the date of SK Broadband’s general meeting of shareholders and the date that is six months after the Share Exchange Date.

 Share Exchange Agreement

Document specifying the rationale of the allotment of shares to SK Broadband’s shareholders

ƒ Final statements of financial position and statements of comprehensive income of each company involved in the Share Exchange prepared six months prior to the general meeting of shareholders pursuant to Article 360-3(1) of the KCC.

 

29


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

SK TELECOM CO., LTD.
(Registrant)
By:

/s/ Yong Hwan Lee

(Signature)
Name:

Yong Hwan Lee

Title: Senior Vice President

Date: April 7, 2015

 

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